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Zombie VCs pose a risk to startups they backed

Mar 04, 2024 - businessinsider.com
The article discusses the growing issue of "zombie VCs" or venture funds that are running out of money to invest in startups. The number of active traditional VCs in US deals decreased significantly from 18,504 in 2021 to 9,966 in 2022. The demise of these zombie VCs will have wide-reaching impacts, not only on their employees and the firms that backed them, but also on the startups that took money from them. Having a zombie VC as an investor could potentially harm a startup's reputation and legitimacy in the industry.

In other news, AI is expected to significantly impact stocks in the coming years, with top commentators predicting a 30% boost in stocks by 2025. There are also growing calls for a change in Google's leadership following the debacle of its AI model Gemini. In the business world, online gambling companies are expanding beyond traditional sports betting, and Singapore is hoping to boost its economy and tourism through hosting six "Eras Tour" concerts this month.

Key takeaways:

  • The number of venture capital firms running out of money, known as 'zombie VCs', is increasing, which could have significant impacts on the startups they have invested in.
  • Billionaire investor Ray Dalio does not believe the current market environment indicates a stock market bubble.
  • There is a growing trend of AI-powered devices aimed at saving time and boosting productivity.
  • Online-gambling companies are expanding their offerings beyond traditional sports betting.
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